Constellation Software Inc.’s chief executive tried to assure investors that the software provider is well-positioned against industry disruptions caused by

artificial intelligence as it reported a 30 per cent drop in profits for the full year 2025.

CEO Mark Miller said Monday that, over the past 12 to 14 months, Constellation directed its efforts at helping its subsidiary businesses, which include Volaris Group, Harris Operating Group and Vela Software International Inc., navigate the transition to AI, including upskilling its development teams.

“There’s real noise in the market now about A.I. disrupting software businesses , and we take that very seriously, but we think we’re well-positioned, although we’re staying very disciplined about how we approach it,” Miller said during the company’s fourth quarter earnings call. “We’re entering 2026 with AI-enabled coding becoming increasingly commonplace.”

Constellation Software’s process for capital allocation is largely unchanged despite this, he said. The company has added an explicit A.I. lens assessing each business for A.I .disruption risk and potential AI upside, and modelling accordingly, he added.

He said it is also piloting A.I. tools to help it rank acquisition prospects by quality and readiness to transact. In 2025, Constellation Software completed a number of acquisitions totalling $1.579 billion, as well as net investments of $530 million, including in Asseco Poland S.A. Since Dec. 31, It also completed or has open commitments to acquire a number of businesses, for a total consideration of $802 million.

Last week, Sabre Corp. announced that Constellation took over approximately 12.7 per cent of its outstanding shares. In connection with the agreement, Sabre will appoint to its board of directors Damian McKay, chief executive of Vela Software, an operating group

of Constellation. The company released its fourth quarter ended Dec. 31 and full year 2025 financial results on Mar. 9.

For the fourth quarter alone, its net income dropped 61 per cent to $110 million from $285 million in the same quarter in 2024. This amounts to $5.19 on a diluted per share basis, down from $13.44 a year ago. Its revenue in the quarter grew 18 per cent to $3.177 billion.

Profits were down 30 per cent to $512 million from $731 million in 2025, or $24.15 on a diluted per share basis, down from $34.48. Its revenue for the full year was up 15 per cent to $11.623 billion compared to $10.066 billion in 2024.

Desjardins analyst Jerome Dubreuil said the quarterly results were in line with expectations, as organic growth slowed to two per cent from three per cent, but its mergers and acquisitions post-quarter “is looking solid.”

“Software in general has enjoyed a bit more benefit of the doubt over the last week amid an unstable geopolitical landscape, thanks to its limited global supply chain/oil exposure,” Dubreuil wrote in a note to clients Monday morning.

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